Your Ultimate Guide to the Best Bitcoin ETF to Buy

As we all know, Bitcoin ETF is still somewhat new. It was launched in January of this year once the U.S. Securities and Exchange Commission approved it, yet the battle is long-standing, having started in 2013 with the first ETF application.

Since then, the first BTC ETF was approved in Canada in February 2021, followed by the first Bitcoin futures ETF in October 2021, and the ten-spot Bitcoin ETFs were finally approved in January 2024.

But fast-forward six months, the market is still trying to solidify its positions. Thus, traders are looking for the best Bitcoin ETFs to buy from, especially when there’s a silent need to democratize Bitcoin access.

Given the fact that BlackRock’s BTC ETF had almost $15 billion in investment since January, whereby Grayscale lost $16 billion, leaving us to wonder what are the best Bitcoin ETFs to buy from, increasing your investment portfolios and adopting Bitcoin with ease.

So, let’s jump into the topic and learn the best Bitcoin ETF to invest in!

Top 10 Bitcoin ETFs at a Glance

The Best Bitcoin ETF to Invest In

As mentioned in the following chapters, we’d like to discuss anything you need to know about the best Bitcoin ETFs currently on the market. This detailed comparison of different ETFs, including their management fees, Bitcoin prices, and holdings, allows you to invest confidently.        

1. Grayscale Bitcoin Trust (GBTC)

Grayscale Bitcoin Trust is a leading investment company within the industry that invests 100% in Bitcoin. It addresses traders and investors who don’t want to hustle with crypto wallets, hold and manage their keys, and look out for their assets overall.

Therefore, any investor looking to gain exposure to Bitcoin could opt out of Grayscale.

Moreover, Grayscale Bitcoin Trust prepared its grounds long before the Securities and Exchange Commission ruling, ensuring elevated fee structures and other benefits for its investors.

Grayscale Bitcoin Trust Overview:

• Primary Listing Market: NYSE ARCA;
• Net Assets: 19.39 billion;
• Market Price of Bitcoin: $61.73;

2. iShares Bitcoin Trust ETF (IBIT)

We must say that iShares Bitcoin Trust (IBIT) is a leading ETF firm that spotlighted Spot Bitcoin ETFs due to its asset allocation model, which waives management fees until the total assets reach $5 billion. Therefore, iShares Bitcoin Trust ETF managed to increase its new investor base.

Furthermore, IBIT offers investors access to Bitcoin through a traditional brokerage account, thus eliminating operational and management fees and potentially high trading costs while offering an easy way to access Bitcoin.

Since IBIT is built by BlackRock Investments, iShares Bitcoin Trust (IBIT) isn’t an investment company registered under the Investment Company Act. Thus, the mutual funds of ETFs aren’t registered under the Investment Company Act.

iShares Bitcoin Trust Overview:

• Primary Listing Market: NASDAQ;
• Net Assets: 19.5 billion;
• Market Price of Bitcoin: $38.39;

3. ProShares Short Bitcoin ETF (BITI)

Even though relatively new on the market, since June 2022, ProShares Short Bitcoin ETF has focused on returning the inverse of the S&P CME Bitcoin Futures Index for a day. Therefore, this Bitcoin ETF could help its investors if Bitcoin prices lose grip.

Moreover, as this is a short strategy ETF, ProShares Bitcoin Strategy ETF functions based on the declining price of Bitcoin, promoting tactical funds that change with the digital asset network’s ability and the market. Also, for any holding day, investors could benefit from a higher return for investors.

As investing involves riskwith ProShares ETF, it could also come with great potential. However, do your due diligence and research in advance, as this isn’t investment advice and doesn’t guarantee future results.

ProShares Bitcoin Strategy ETF Overview:

• Primary Listing Market: New York Stock Exchange (NYSE);
• Net Assets: $2.115 billion;
• Bonds: 65.64%;
• Other: 24.01%;
• Cash: 10.34%;
• Market Price of Bitcoin: $26.23;

4. Volatility Shares 2x Bitcoin ETF (BITX)

Here’s a Bitcoin ETF that harnesses futures contracts for leverage, allowing investors to trade Bitcoin with borrowed funds, thus becoming a convenient win-win. Indeed, there are risks involved, and there is no guarantee that this investment strategy will be successful. Yet, Volatility Shares 2x Bitcoin ETF aims to provide two times the daily Bitcoin price movements.

Volatility Shares 2x Bitcoin ETF Overview:

• Primary Listing Market: CME Futures Exchange;
• Net Assets: $1.571 billion;
• Other: 85.42%;
• Cash: 7.48%;
• Bonds: 7.09%;
• Market Price of Bitcoin: $41.95;

5. Invesco Galaxy Bitcoin ETF (BTCO)

If you’re looking for the best Bitcoin ETFs to diversify your investment portfolio, be sure to check out Invesco Galaxy Bitcoin ETF. This exchange-traded fund offers multiple benefits to new businesses, such as waiving the 0.25% fee for the first six months. Indeed, there are other Bitcoin ETFs with even 0 fees, yet this one caters to those looking for short-term trading Bitcoin.

Invesco Galaxy Bitcoin ETF Overview:

• Primary Listing Market: CBOE BZX Exchange;
• Net Assets: $493 million;
• Market Price of Bitcoin: $67.14;

6. Bitwise Bitcoin ETF (BITB)

Bitwise is a newcomer to the Bitcoin ETFs with some spectacular features, such as being listed on the New York Stock Exchange’s NYSE Arca platform, which means that it is trading on a premium exchange-traded funds platform.

Moreover, due to its short-term fee waiver until $1 billion funds in AUM, BITB is still a valid contestant with a post-waiver fee of 0.20%.

Bitwise Bitcoin ETF Overview:

• Primary Listing Market: NYSE Arca, Inc;
• Net Assets: $2.482 billion;
• Market Price of Bitcoin: $41.95;

7. ProShares Bitcoin Strategy ETF (BITO)

As one of the first leaders within the Bitcoin Futures ETFs space, it is still a key player, offering products that derive their value from the future prices of the underlying asset, which is Bitcoin prices.

To make a rough impression on its potential, just a few days after its launch, BITO attracted around $1 billion in assets.

ProShares Bitcoin Strategy ETF Overview:

• Primary Listing Market: NYSE Arca;
• Net Assets: $2.115 billion;
• Other: 24.01%;
• Cash: 10.34%;
• Bonds: 65.64%;
• Market Price of Bitcoin: $25.25;

8. Global X Blockchain & Bitcoin Strategy ETF (BITS)

For investors looking for long-term growth, BITS could be a good option. It seamlessly offers a cautious management strategy of BTC futures, thus making it easy to access Bitcoin futures and blockchain stocks in one trade.

Global X Blockchain & Bitcoin Strategy ETF Overview:

• Primary Listing Market: Nasdaq;
• Net Assets: $26.95 million;
• Stocks: 49.10%;
• Bonds: 33.09%;
• Other: 14.59%;
• Cash: 3.23%
• Market Price of Bitcoin: $69.41;

9. WisdomTree Bitcoin Fund (BTCW)

The WisdomTree Bitcoin Fund is an exchange-traded fund that aims to gain exposure to BTC’s price with low expenses and liabilities simply by holding the cryptocurrency. As a result, it will value the daily shares by using a calculated value between the aggregated executed trades of major BTC spot exchanges.

Using the WisdomTree ETF, anyone could gain exposure to BTC’s price movements and other traditional classes, such as bonds and equities.

WisdomTree Bitcoin Fund Overview:

• Primary Listing Market: Cboe BZX Exchange;
• Net Assets: $86 million;
• Market Price of Bitcoin: $71.65;

10. Fidelity Wise Origin Bitcoin Fund (FBTC)

This exchange-traded product allows investors to gain exposure based on Bitcoin’s price through passive investments, such as purchasing funds through multiple investment accounts, such as trust, brokerage, and tax-advantaged accounts.

Fidelity Wise Origin Bitcoin Fund Overview:

• Primary Listing Market: CBOE BZX Exchange;
• Net Assets: $11.076 billion;
• Market Price of Bitcoin: $59.48;

What are Bitcoin ETFs?

ETFs are investment companies registered with the Securities and Exchange Commission, and their shares are also registered. Like mutual funds, these ETF investment vehicles track commodities, bonds, stocks, and other financial and other major asset classes. However, ETFs are traded directly on a stock exchange.

Bitcoin ETFs are exchange-traded funds that invest in assets related to the original crypto, in our case, Bitcoin. Therefore, the ETFs sell shares to multiple investors on the open market, thus providing direct exposure to Bitcoin.

Now, another quick thing: there are two types of ETFs: spot Bitcoin ETFs and futures contracts. Spot Bitcoin ETFs are new investment objectives that buy shares proportional to the asset’s ownership, which is Bitcoins. Therefore, you can directly invest in Bitcoin, especially due to its enhanced liquidity and stable prices.

Bitcoin Futures ETFs is a commodity pool that gains exposure through derivative contracts based on the market price. Another aspect is that Bitcoin futures work based on a time-limited contract that aggregates the buying or selling price of the underlying asset, Bitcoin, at a specific date and time. Thus, many investors gain exposure to Bitcoin without owning the asset.

Overall, Bitcoin ETFs led to an increased adoption of digital assets, making Bitcoin widespread global adoption. To purchase Bitcoin ETFs, you can use a traditional brokerage account, which allows you to buy stocks, bonds, and other ETFs.

Pros and Cons of Bitcoin ETF Investments

Investing and buying through an ETF, regardless of the type, such as spot Bitcoin ETF or futures contracts, have their pros and cons, so let’s get into it so you know what to expect.

The Pros of Bitcoin ETFs

• For starters, Bitcoin ETFs are regulated, which makes them highly accessible to anyone interested in the best Bitcoin ETFs to buy. They become attractive to all investors since they are traded on regulated crypto exchanges.
• Another essential aspect is that it doesn’t require storage, as Bitcoin ETFs provide exposure to prices without using a crypto wallet or an exchange account. In contrast, buying BTC through a crypto exchange requires a wallet to store your purchased Bitcoin.
• When discussing the risks, having Bitcoin ETFs in your investment portfolio could alleviate the risk distribution, especially when there’s a low correlation with stocks or bonds. Also, ETFs offer more liquidity.

The Cons of Bitcoin ETFs

• The first con that comes to our mind is that an ETF removes ownership and could lead to missing some benefits.
• BTC ETFs typically come with higher fees than traditional ones and are often associated with ETF security.
• Then there’s the performance of the underlying asset by the ETF, and often minor tracking errors could greatly influence it.

How to Choose the Best Bitcoin ETF to Buy

When discussing the best BTC ETF to buy, several aspects should be considered, such as the fund’s expenses, the assets under management, liquidity, and others that could significantly influence your strategy.

1. Expense Ratio: The lower the expense rate, the more favorable it is for all investors, as it directly impacts the general return.
2. Assets Under Management: Again, the higher the AUM, the more trust it brings to all traders and investors, as it directly translates to higher liquidity and trading volume.
3. Liquidity: If this is higher, it is a good sign, as it means small bid-ask spreads, thus reducing the trading costs.

Ultimately, it all comes down to the reputation of the chosen BTC ETF. Therefore, it must have a proven track record of managing various exchange-traded funds, crypto ETFs, and other commodities. Some of the most established ones have the knowledge and infrastructure to manage different assets easily, demonstrating their abilities through different tracking benchmarks.

Final Thoughts

Since Bitcoin is becoming increasingly adopted, Bitcoin ETFs seem a popular choice for investors to buy and trade BTCs. Whether you’re a spot Bitcoin fan or a futures contracts adopter, you still need to properly research each to ensure you’re finding the best solution and strategy for diversifying your portfolio, thus making the best investment decision.